European Central Bank (ECB) President Mario Draghi attends the European Banking Congress at the Old Opera house in Frankfurt, Germany November 20, 2015. REUTERS/Ralph Orlowski
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Mario Draghi needs to come up with something to surprise currency traders next week or risk a euro rebound that would threaten his efforts to boost inflation.Options signal there's a 70 percent chance the euro will match that low this year, up from 18 percent when the ECB last met in October.Ways that Draghi might exceed investors' expectations include lowering the ECB's minus 0.2 percent deposit rate by 0.2 percentage pointz, Bell said.A weaker euro is key to the ECB's ambition to boost inflation to 2 percent.The risk for Draghi – and the euro – is that he fails to live up to the growing speculation that he has a surprise in store.Jones said he's confident Draghi will either cut the deposit rate by as much as 0.25 percentage points or widen the scope of the 1.1 trillion euro ($1.2 trillion) QE program, and sees the euro falling below $1.05 before year-end and less than $1 in 2016 .Not everyone's convinced Draghi will do enough to satisfy markets.
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